Philips has announced that it plans to extend its patent licensing scheme for blank optical discs, DVD drives as well as any consumer electronic DVD device, such as CD/DVD players and CD/DVD recorders, through imposing its DVD patent LSCD (Licensed Status Confirmation Document) system on such makers, with the system being drawn up and possibly coming into force soon.

Philips' LSCD system will not substantially influence Lite-On IT and Quanta Storage, the largest Taiwan-based makers of half-height DVD burners and slim-type DVD burners, respectively, according to industry sources in Taiwan. This is because Lite-On IT and Philips have set up the joint venture Philips Lite-On Digital Solutions in Taiwan and Quanta Storage has a shelter from the patent claim through its cross-licensing with Sony which, along with Philips, is among the members of the DVD 3C Patent Group, the sources pointed out.

However, the LSCD system might have a negative impact on second-tier makers of DVD recorders in Taiwan and manufacturers of DVD players/recorders in China. Since these makers have not obtained licensing from DVD 3C and/or DVD 6C patent licensing pools, Philips will be able to use the LSCD system to prevent their products from entering the US, the European Union and Japan markets...